Trade restrictions from "summary" of The Economic Consequences of Peace by John Maynard Keynes
Trade restrictions, in the form of tariffs and quotas, are often implemented by governments as a means to protect domestic industries from foreign competition. While these restrictions may provide short-term benefits to the protected industries, they can have long-term negative consequences for the overall economy. By limiting the flow of goods and services across borders, trade restrictions can lead to reduced competition in the domestic market. This lack of competition can result in higher prices for consumers, as domestic producers are able to charge more for their goods without fear of being undercut by cheaper imports. In addition, the lack of competition can also stifle innovation and efficiency, as domestic producers have less incentive to improve their products or production processes. Trade restrictions can also have negative effects on international relations, as they can lead to retaliatory m...
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